Optimizing carbon tax for decentralized electricity markets using an agent-based model

Averting the effects of anthropogenic climate change requires a transition from fossil fuels to low-carbon technology. A way to achieve this is to decarbonize the electricity grid. However, further efforts must be made in other fields such as transport and heating for full decarbonization. This would reduce carbon emissions due to electricity generation, and also help to decarbonize other sources such as automotive and heating by enabling a low-carbon alternative. Carbon taxes have been shown to be an efficient way to aid in this transition. In this paper, we demonstrate how to to find optimal carbon tax policies through a genetic algorithm approach, using the electricity market agent-based model ElecSim. To achieve this, we use the NSGA-II genetic algorithm to minimize average electricity price and relative carbon intensity of the electricity mix. We demonstrate that it is possible to find a range of carbon taxes to suit differing objectives. Our results show that we are able to minimize electricity cost to below \textsterling10/MWh as well as carbon intensity to zero in every case. In terms of the optimal carbon tax strategy, we found that an increasing strategy between 2020 and 2035 was preferable. Each of the Pareto-front optimal tax strategies are at least above \textsterling81/tCO2 for every year. The mean carbon tax strategy was \textsterling240/tCO2.Comment: Accepted at The Eleventh ACM International Conference on Future Energy Systems (e-Energy'20) AMLIES Worksho

Financial distress and its repercussions on the manufacturing sector in Zimbabwe

The study focuses on establishing the causes of financial distress and its impact on the performance of firms in manufacturing sector in Zimbabwe. The sector plays critical roles in the economy through its linkage to agriculture, GDP, export earnings and employment creation. The study was based on 140 sampled companies in the sector. The findings revealed that there is evidence that the firms in the sector are financially distressed, which is caused by; cost and shortage of capital, cost of importing raw materials, inadequate and costly infrastructure (power and water). Financial distress resulted in deteriorating company performance, company closures, job losses and failure to service loans from banks by companies. The study concluded that the majority of firms in the manufacturing sector are financial distressed and such distress has negative effects on company performance. For the solutions to the problem, the study recommended that firms should raise cheaper capital from other sources other than borrowing, invest in new technology and close under- performing units. The government should also play its part through rehabilitation of infrastructure (power and water), implementing protectionist measures to protect local firms, provide cheap and long term finance and revamp local value chains

Assessing Funding Mechanism Available for Mining Companies in Zimbabwe

The mining sector has been the cornerstone of economic growth in Zimbabwe hence funding becomes very crucial to resuscitate the economy. The study aimed to assess the funding mechanisms for the mining sector of Zimbabwe and the effect of these on the performance of the sector. A quantitative study was carried out in the mining sector. The research findings showed that respondents pointed out that the funding mechanisms used in the mining sector of Zimbabwe are project finance, finance by private equity, public bonds and loans from banks and other financial institutions. It was also revealed that over and above available mechanisms, investment in the mining sector is being influenced by Interest rate, Business economic empowerment policies, bank lending criteria and Technical information, simultaneously. Furthermore, the study established that the mining sector needs skilled and technical staff, Technical information, banks’ lending criteria and Capital markets to get funding from investors. It was derived that, investment in the mining sector will increase production, product quality and profitability which in turn lead to infrastructural development. In addition, it is envisaged that funding will result in mining exports increase at the same time that new technologies are being introduced and the GDP is rising. Owing to the focus being exclusively on the funding of the mining sector, the study also recommended further studies on other factors, besides funding, that are affecting the performance of the sector